 QuickBooks Online 2024, bill for hourly services of staff entering billable time. Get ready and some coffee because we get work done on time with QuickBooks Online 2024. Here we are in our Get Great Guitars 2024 QuickBooks Online sample company file we set up in a prior presentation opening the major financial statement reports like we do every time the reports on the left hand side in the favorites right click in the balance sheet so we can open link in a new tab right click in the profit and loss to repeat the opening of the link and right click in the trial balance to open the link in a new tab tabbing to the right closing the hamburger and then changing the range we're going to go from 010124 tab 022824 let's break it out on a month by month side by side and then run that report tabbing to the right repeating the process closing up the hamburger first a word from our sponsor yeah actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our trust me I'm an accountant product line yeah it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions if you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com change in the range 010124 tab 022824 month by month on the breakout run it to refresh it tapping to the right repeating the process one more rep here one more rep we can do it here we go 010124 tab 022824 tab month by month breakout and then run okay take a breather take a breather stretch a little bit we're going to go back to the balance sheet now the scenario this time being that we're going to be entering time into our system imagine we have a system similar to what you might see in a law firm or cpa firm where we have a staff the staff does work typically for the partners you might have multiple partners that are using the staff in order to do work for basically clients and the staff member then are going to have to give the information that they worked on the clients that they worked on in a timesheet format to the partners so the partners can then bill the clients for the work that has been done so this would be kind of a job cost system you can imagine it in a construction setting as well but it's often also in service areas where you have like a job cost system like a law firm cpa firm bookkeeping firm or something like that so to have a similar scenario in our guitar shop we're going to be imagining that are we have people that do guitar lessons so we own the guitar shop we have people that do guitar lessons they come into our shop we bring in the clients here we're like the partner we bring in the clients we're the money makers and then we have the staff do the work actually provide the lessons and then they bill for the lessons and then they tell us about the about the billings so that we can then bill the client for the lessons that have been provided let's look at a quick flow chart over here to get an idea this is the desktop flow chart even though we're using it for online purposes because we just want to look at the flow of the forms we're in the employee area and we're looking at the time tracking however it's deceptive that this is down here in the time tracking because it doesn't necessarily mean that it's only for employees in order to record their time in other words if we have an hourly employee we might use this in order to then populate the time when we process their paychecks i need to know how many hours they work to process the paycheck but even if we paid them salary in which case i don't need to know their asset their their hours to process the payroll because i just paid them the same amount each time i still might need the time sheet even if they weren't employees at all and we have them as contractors which you have to be careful of to see if they could qualify as contractors but even if they did they qualify as contractors we still might want to enter their time why because we want to use it to bill the clients if you've ever seen that the law there's a movie about the law movie it's kind of old now it was called devil's advocate where the where the the star was working for kind of a these crooked uh had a crooked employee or clients and whatnot but the firm kept on telling them i don't care if you're even just thinking about the client make sure that you bill it write it down bill it we need to send out the bill for it and so you could do that internally within quickbooks by entering the time into the system here or possibly you can imagine some other system where you have an external software or you could just do it in in word or excel and then on a weekly basis or monthly basis provide that information to the partner who's actually going to send out the bill right because the partners don't actually do any work right they're the money makers they go out and wine and dime you know and then and then bring in the clients and then make all the staff do the work right then they bill and they bill for it right that's how the system works so that's going to be that's going to be what we will do here let's go back on over and so we're going to go to the first tab now you'll recall that the payroll tab is over here we touched on this in a prior presentation if you have payroll then then you have your employees in this section if you go into a particular employee then you could see you have the time tracking and the pay and tax docs and you could send invitations here however you you might not be in a situation where you're processing the payroll within QuickBooks maybe you have someone else doing the payroll or maybe these people are set up basically as contractors or something and you still want to basically track their time note that we have here the payroll tab and the time tab if you go to the time tab it manages basically the time being spent usually when you're thinking about basically employees right so this will be tracking basically time however if that were the case you might be saying well why wouldn't it be under the payroll tab then it's not under the payroll tab because you could imagine using this system even for people that aren't employees even if you're not if you don't have payroll set up within QuickBooks possibly you have payroll set up with an external user you still might want to track the time because because then you might that might help them to process payroll if you have like an adp or a paychecks but it also will allow you to bill for the time if you're using this kind of job cost system if you have contractors you still might track the time yourself as the owner of a sole proprietor you would not be an employee then you wouldn't be withholding or issuing yourself a w2 but you might still want to track your time because of course you want to use it to bill the clients for if you're in a job cost type of system so I think that all of QuickBooks if you go to unless you're in the most basic level of QuickBooks I think they're providing this time tab to everyone even if you don't have employees and even if you're in a fairly basic level of the QuickBooks so this is the newest latest and greatest way to be using the time if you're in a QuickBooks earlier than that you might still have access to the old system which is under the plus button here and you have the single time entry and the weekly timesheet so this was the weekly timesheet we used to basically use here and it's got a similar kind of system or worksheet but now usually I think they're trying to get everybody to basically move into this time entry over here and then we can go into our time entries and we can enter our time here before I do that by the way if you go back to the to the overview if you wanted to add employees then you can add them here and you can send out you can send this out to them to hopefully allow them possibly to be entering the time on their end but if they don't do that if they just provide you with weekly time and an Excel worksheet or some other software then you can do it that way and just manually populate it by going to the time entries as well so let's go over here and we're going to basically enter another time entry this was for last month so I'm going to add a time on the right and I like to do it on a weekly time entry you can imagine doing it weekly but you could also have the clock running your your actual time or add a single entry so let's go to the weekly time entry and I'm going to say that this is going to be for February so let's see if I can go to the last period in February that's fully in February so let's go from the 18th to the 24th the whole week is in February I'm going to switch the user and I'm going to say it's going to be for Adam Hamilton so now I have it for Adam Hamilton and then so here is our entry so we have the customer we've got the day of the week so let's add a customer and this first one I'm just going to make up a customer this time so we're going to say let's say now won't let me add a customer within this sheet which is which might be a good internal control if you have other people entering time so they don't like mess up your customer list but so that means let's open up a new tab I'm going to right click on this tab duplicate it I'm going to pull it to the left and let's go down into the sales tab and into the customers and then I'm going to add a new customer very generic customer I'm going to add and we're just going to call customer I'm just going to put it in the required field customer one I know it's quite generic and so that's it I'm just going to add that we would probably want more contact information if these are going to be repeat customers but I'm just going to use that for our time entry and let's see if I can populate there it pops in here customer number one and we're going to say that he worked on let's say Monday for two hours and then we're going to say on Wednesday for two hours and then we're going to say that it will be billable so service item this is going to be the item notice I have here Adam Hamilton time but what I'd like to do is say that this is going to be his guitar time that I'm going to do for guitar lessons so this was his generic time they won't let me add another item as in this field so let's go back to the first tab and this kind of makes sense from an internal control standpoint because you don't really want your employees to be adding time or or items as they enter their time so I can go back on over here and say let's go to the sales tab let's go to the products and services and I'm going to add a new let's say service time and it's going to be for Adam Hamilton guitar lessons I may not have spelled that right but that's what we're going with and then that'll be the description and the price let's say is $75 so we charge $75 for Adams guitar lessons service income it's not going to be taxable because it's a service item with regards to sales tax so I'm going to say it's a non-taxable item here and there we have nothing on the purchasing side let's create it and see if that pulls on over to our worksheet so let's select the drop down and it doesn't pull over so I'm going to refresh the screen I might have to enter this again but that's okay so I'm going to hide this and we're going to go into the time entries add time weekly time sheet and let's see if it pulls in down here we're going to say this is going for when they close this out let's change it to switch user Adam Hamilton boom and the date is going to be February 18 to 24 and then the customer is going to be customer number one all right now I have this populated down below and billable I'm going to say uh yes and then I'm going to say that it's going to be amel amel Adam Hamilton guitar lessons okay then he worked on two hours on Monday and then Wednesday two hours okay that's good now note that these options the service item being charged and whether it be billable or not used to be columns so that we can assign one service item and whether it be billable or not to these selections for an entire row so that would mean that if we wanted a different service item even for the same customer we would have to go then to another row now at first look it looks like this is actually even more restrictive because you might think that this would be applied to all the time entered on the entire worksheet which would mean that we can only make all of it either billable or non billable and only assign one item to everything on the worksheet but that's not actually how it's set up if you go into each of these items you can change this service item and whether it be billable or not for each of the individual time entries so be careful with that that's actually more versatile however it can be a little bit confusing because you can't really see it in the middle of the timesheet you have to actually click on the time and look at it down here when we finish doing the time entries and then save it then we will be able to go back into the time and see them as individual entries which is actually a little bit more detailed and we'll be able to see if the billable items and the proper service items have been applied out whatever adam hamilton works on we're going to charge for his particular rate whatever whether he did bookkeeping or taxes and in that way you can you can plight out to the whole sheet in our case he's just doing guitar lessons so that doesn't not become a problem now what another thing we keep in mind is that this one of course is going for customer number one so even if you worked on some of these other days i can't put it on the same row because because that would be going to customer number one right so that so i have to put customer number two if there's another customer on a different row and i'm going to have to add another i think i already have a customer two let's say go in here and we have a customer number two so let's just use that one and if you don't have it you can add customer number two over here in the customer's area and then populate it and then we're going to say that he worked on customer number two on Tuesday and Thursday okay so that should be the billable items i'm just going to say guitar lessons from Adam as the note and that should pull in so that we can then use this information to populate it into an invoice which will do in a future presentation so is that all i need i think that's all i need let's go ahead and say for 75 let's save it it and then it's been saved close and i'm going to go okay so let's go and close this out i think it's been saved and now i'm going to set a custom range here because i'm working in the future so i'm going from january to february and so here's the information for adam if i go into adam's information it shows it one by one so here we have the days each of the days so here's february and it's been unapproved unapproved unapproved unapproved for those four so that looks good and then these two down here were for last month and those have already been approved so they're already good to go okay so if i go into one of these i can edit it and there's the in this one entry and i can go into the the manual time card and here's the actual time card entry so i'm going to close this back out i'm going to go back to the timesheet here and let's see if we can just simply approve it and so so uh you will be approving and locking time from one one uh 24 to 229 uh for this team member so i'm going to say okay let's let's do it that's fine let's go ahead and save it and then if i go into my sales tab and i go into my all sales item we should have unbillable items for time that has been entered that hasn't been billed yet so there we have it for customer number one and customer number two and then if i go into the customers over here we should also be able to sort by unbilled time so there it is for customer one customer two and they have those two unbilled times if i go into customer number one we've got these time charges that we can use to convert to an invoice which is nice let's do a similar process for Erica our other employee so i don't have a billable rate yet so the first thing to do is i'm going to say okay Erica set up she's going to do guitar lessons so i'm going to go okay let's go into my sales tab and let's set a rate up for her guitar lessons and the products and services and i'm going to call it drop down service item and i'm going to call it Erica guitar lessons and so it's going to be a service item and apparently she's more in demand so we're going to charge lessons lessons i'll teach you a lesson well that's great that's what i'm here for is to learn that's good because i'm about to teach you a lesson why are you saying it like that i i'm paying you to teach me a less that's good because i'm that's what i do i'm going to teach you a lesson okay so any case so we're going to save that oh wait we don't want any sales tax let's get rid of the sales tax and then save it and we're going to go okay 115 let's save that and that looks good and then i'm going to make two more customers generic customer three and four as you might guess let's go to our customer tab and add two more customers so we've got customer three we're going to say and then we're going to say save and then a new one new one and we're going to say uh what that's not right spot let's say a new one and customer four let's save that and then we're going to go back into our our billable or time entries let's go into our time entries and so now i'm going to add a new time entry weekly and this is going to be for switch user Erica Erica and so we're going to say that she worked on our customer three or had go guitar lessons and once again she worked on monday and wednesday two hours we're going to say two hour guitar lessons and then also she worked for customer number four guitar lessons on tuesday and thursday and we're going to say that they are billable yes and we're going to say that the billable rate is Erica guitar lessons and we'll just call it Erica guitar lessons in the note so that's her time eight hours we're charging 115 for her rate so i'm going to save that and there we have change saved changes saved okay close that i think we're good there's Erica's time popping in there if i go into that we see it one by one uh there and that looks good and so then if i edit it there's our entry here and then if i go into the time entry we can see our time entry so notice on the first one it says it's billable and then on the second oh i i can make it billable per line so here we go so i'm going to say this is going to be Erica guitar lessons okay i have to make each one of them i see how it's working Erica guitar lessons is billable and then here we're going to say Erica guitar lessons is billable and then this one is going to be Erica guitar lessons is billable okay so i can actually change it per line item so i misspoke myself before when i said that i still think it's a little bit cleaner the way it was before where you can basically put it for an entire line but here you can basically change it per i'm going to say this is billable i can change it per entry with the lesson with this item down here although that's a little bit confusing because you can't see it easily in the timesheet so why is it and then it's got this little click mark here so let's go ahead and save that let's see if i got it now so Erica guitar lessons is it billable yes and then Erica guitar lessons billable yes Erica guitar lessons billable yes let's put this in the notes on all of them too there's the note there's the note there's the note and then let's save it again and then it's saved so i'm going to close this back out so now we've turned them all on to be billable so that looks correct now so let's go ahead and save that so approve time okay lock time through through you will be approving locking for this member approve time and if i go back so there is that if i go back to my time entry here and i look at Adam just to view the time entry this timesheet has been approved and cannot be edited a manager must unapproved the day or week the timesheet falls in so we'd have to unapprove it to go back in it if i go into the manual time entry which we should be able to do as the manager but here when i when i selected this information it applied to all of them basically by default so i think that one is correct let's close this out and let's now check it out if i go into the sales tab on the left and we go in once again to the sales information unbilled income now we've got these unbilled time that we're going to be entering from our staff from our employees and then if i go to the customers we can go back into the unbilled area and once again now we've got all these customers that we can build out this information for for example customer number three where we have these billable items so if you needed to remove that time as a supervisor or whatever then you'd have to unapprove it right so you'd have to go back in here as as the manager and unimprove the time and then change it in the time entry so you can unapprove and then make changes to it if you needed to adjust it after that point after you've already approved it all right so no changes have been made to the income statement and the balance sheet the financial reports as of yet because all we've done is enter the time we haven't charged for the time at this point in time and remember we're not really entering this time information to process the payroll we're entering the information so that we can then create invoices from it and that's what we'll do in a future presentation also remembering that if i build for myself then i i might set myself up basically as kind of an employee at least for the purposes of processing the billing right or possibly have contractors might not necessarily be employees you might not necessarily have your payroll set up in order to still use this time entry system for a job cost kind of system because you might be doing payroll outside of the outside of quickbooks or you might not be doing the payroll in the same way possibly having contractors or partners or something like that equity shares within the organization that still needs to be built out for